Corporate Restructuring
A large industrial company had been in structural loss for several years. Its previous CEO had been heavily involved personally in international relations to the detriment of the conduct of operations. The erosion of margins was perceived by management as the consequences of relentless competition from Asian countries.
Problem description
Our client was a pioneer in the field of renewable energy deployment, to the point of becoming a key company in this sector.
Margin erosion had been underway for several years. The CEO was convinced that the company's salvation would come from large international contracts. His view of the situation was "tunnelled", probably a consequence of his previous successes.
When the board of directors decided to terminate the CEO's contract, his successor was confronted with a severely disorganized company.
Results
Short-term
- Strategic diagnosis: how does the plane we are in fly? Financial analysis.
- Verification of the adequacy of the organizational structure and indicators.
- Review of current contracts. Process analysis.
Establishment of an action plan for debt restructuring.
Medium term
Foresight analysis, creation of a new business model made possible by digital transformation.
Results
- Operations: 20% cost reduction. Process and value chain analysis, identification of staff redundancies and underutilized material assets.
- Strategy. Taking ESG issues into account in the definition of the business model. Refocusing of the R&D portfolio, evolution of the marketing persona.
- Back to profitability, then to growth. Positive market dynamics in the historical segments, new development prospects with new capacities.
The efforts to be transparent with employees as well as the excellence program with the teams lead to better engagement and engagement rates.
Companies that position themselves as leaders need to move away from piecemeal approaches to technical debt in favor of a new, holistic vision.